Term Deposit Investing in kids name

[peat]

its just different sides of the ledger really innit Aaron?
tax avoidance may be separate from tax evasion but these days its still illegal

todays Herald article will probably ensure you decide to act scrupulously Ptolemy
http://www.nzherald.co.nz/business/n...0652317&pnum=0

[shasta]

its just different sides of the ledger really innit Aaron?
tax avoidance may be separate from tax evasion but these days its still illegal

todays Herald article will probably ensure you decide to act scrupulously Ptolemy
http://www.nzherald.co.nz/business/n...0652317&pnum=0

You can pay your kids up to $20 per week tax free (no paye due to the rebate), if you put it into there a/c, but thats only $1040 per year.

Not sure whether you actually need to be an employer to do it, but same principle applies if you were to put in small amounts regularly i doubt the IRD would be that interested given the small amounts involved

[CJ]

You can pay your kids up to $20 per week tax free (no paye due to the rebate), if you put it into there a/c, but thats only $1040 per year.

Not sure whether you actually need to be an employer to do it, but same principle applies if you were to put in small amounts regularly i doubt the IRD would be that interested given the small amounts involved

If you are not a business, you dont get a tax deduction so it doesn't really matter.

[peat]

we dont need an answer belg
it is avoidance.

an arrangement, whether entered into by the person affected by the
arrangement or by another person, that directly or indirectly -
(2) Has tax avoidance as its purpose or effect;

[777]

There used to banks where you could put money in an account for your children's education. IIRC the accounts were in the children's name. They earned the interest but the money was held for their education or use sometime down the track.

Anyway with PIE accounts tax maximum of 28% from October why not just accept it?

[Ptolemy]

Thanks for all the replies guys. It has been helpful. Given the kids actually do have an education account I have decided to gift them the amount they would have been drip fed over the next few years into their account now - that way they get the benefit of the compound interest early.

cheers